Termination of a property management mandate: rights, conditions and
5 minutes
Entrusting the management of your property to an agency through a property management mandate often symbolizes peace of mind. However, there may come a time when you wish to end this collaboration. Termination of property management mandate, cancel property management mandate, property management contract termination… these searches reflect a clear need: to understand your rights, the legal conditions, and the steps to take to act calmly.
Whether it's to regain control over the property management, change agencies, or due to a disagreement, the termination of a property management mandate is governed by law and the signed contract. Here is a comprehensive guide to help you make the right decision and avoid mistakes.
Can a landlord terminate a property management mandate?
The owner's right to terminate the mandate
Yes, as a landlord owner, you have the right to request the termination of the property management mandate. The mandate is a service contract subject to the Civil Code. As such, it can be terminated, provided that the rules set forth in the contract and the applicable legislation are followed.
However, terminating a property management mandate cannot be done freely at any time without consequences. It all depends on the termination date and the reason given.
Difference between termination at expiration and early termination
There are two main situations:
Termination at expiration, which occurs at the end of the initial duration of the mandate
Early termination, which takes place before the date specified in the contract
These two cases involve different timelines and financial consequences.
In which situations is it possible to terminate a property management mandate?
Termination of the mandate at its expiration
The majority of property management contracts are concluded for a duration of one year, tacitly renewable. The termination of the property management mandate at expiration is the simplest and least risky situation.
It is sufficient to respect the contractual notice period, often between one and three months before the anniversary date of the mandate. Failing to do so results in the automatic renewal of the contract.
Early termination of the property management mandate
Early termination of a property management mandate is possible in certain specific cases, generally justified by a particular event.
Serious fault or breach by the real estate agency
If the agency fails to meet its obligations (lack of follow-up, unpaid rents, lack of information, repeated errors), you can invoke a serious fault to terminate the property management mandate without waiting for the expiration.
Sale of the property
The sale of the property generally leads to the termination of the property management contract, since the mandate is attached to the property and not to the person.
Tenant's departure
Some contracts provide for the possibility to terminate the management mandate in the event of the tenant's departure, especially if the task of reletting is not desired.
Death of the landlord owner
The death of the principal automatically ends the mandate, unless otherwise stated. Heirs can then decide to terminate or continue the property management.
What deadlines must be respected to terminate a property management mandate?
The notice period specified in the contract
The property management contract always specifies a notice period to be respected for any termination of the property management mandate. This period is generally:
1 month
2 months
or 3 months
Failing to respect this notice period may result in termination fees or the automatic renewal of the mandate.
The impact of the Chatel law on termination
The Chatel law requires the agency to inform the owner of the possibility not to renew the mandate. In the event of an omission or late notification, you can terminate the property management mandate at any time, without penalty.
What procedure should be followed to terminate a property management mandate?
The key steps in termination
For the termination of the property management mandate to be valid, it is essential to follow a rigorous procedure:
Check the contract clauses
Identify the expiration date or the reason for early termination
Draft a clear termination letter
Respect the notice periods
The recommended method of sending the letter
The termination of a property management mandate must be notified by registered letter with acknowledgment of receipt. This method of sending constitutes legal proof in case of dispute.
Termination letter: what mandatory mentions should be included?
Essential information to be included in the letter
The termination letter for the property management mandate must contain:
Your complete contact details
Those of the real estate agency
The reference of the mandate
The effective date of termination
The respect of the notice period or the reason invoked
A clear and precise letter limits disputes.
Documents to attach to support the request
Depending on the context, it may be useful to attach:
A copy of the management mandate
Written exchanges proving a breach
The deed of sale of the property
What fees are associated with the termination of a property management mandate?
Fees in case of termination at expiration
When the termination of the property management mandate occurs at expiration and according to the rules, no specific fees can be charged, except for services already rendered.
Possible indemnities in case of early termination
On the other hand, early termination of the property management mandate may lead to the payment of indemnities provided for in the contract, except in cases of serious fault or contrary legal provision.
Consequences of terminating the property management mandate
Return of documents and funds
After the termination of the management mandate, the agency must return:
The documents related to the property and the tenant
The funds held on your behalf
The accounting history
Continuity of management towards the tenant
The termination does not change the tenant's lease. You become their direct interlocutor or assign management to a new property administrator.
Terminate in order to regain management or change agency
Transition to autonomous property management
Some owners choose to terminate their property management mandate to manage their property themselves. This solution helps reduce costs but requires time and a good understanding of legal obligations.
Entrust the property to a new agency
Changing agencies is often an opportunity to optimize property management, improve profitability, and receive more effective support.
Frequently asked questions about the termination of a property management mandate
Can a property management mandate be terminated during the contract period?
Yes, but only in certain specific cases or by accepting the indemnities provided for in the property management contract.
Is there a cooling-off period after signing the mandate?
A cooling-off period of 14 days may apply if the mandate was signed remotely or outside of an establishment.
Is a model termination letter mandatory?
No, but using a structured model facilitates the termination of the property management mandate and limits disputes.
